1. U.S. DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING ADMINISTRATION ARRA GREEN JOB AND HEALTH CARE / EMERGING INDUSTRIES NEW GRANTEE POST AWARD FORUM JUNE 15-16, 2010 | SAN FRANCISCO, CA Fiscal Documentation and Tracking

2. Topics Financial management system Documentation and tracking Reporting elements

3. Financial Management System Grantees and subgrantees must have a financial management system (FMS) Set of standards for the FMS is addressed in the Code of Federal Regulations (CFR)  29 CFR 97.20  29 CFR 95.21

4. Financial Management System Financial reporting Accounting records Internal control Budget control Allowable costs Source documentation Cash management

5. Financial Management System Financial reporting  Accurate, current, and complete disclosure of the financial results of “financially assisted activities”  In accordance with the requirements of the grant or subgrant  NOTE: The DOL-ETA reporting requirements include that reports must be filed on an accrual basis

6. Accounting records  Must be maintained to adequately identify the source and application of funds  Must contain information pertaining to grant or subgrant  Authorizations  Obligations  Unobligated balances  Assets  Liabilities  Outlays or expenditures  Income Financial Management System

7. Internal control  Grant and subgrant  Effective control and accountability  Cash  Real and personal property  Adequately safeguard  Solely used for authorized purposes  Other assets Financial Management System

8. Budget control  Grant and subgrant  Actual expenditures must be compared to budgeted amount Financial Management System

9. Allowable costs  Costs must be  Reasonable  Allowable  Allocable  In accordance with  OMB cost principles  Agency program regulations  Terms of grant  And terms of subgrant Financial Management System

10. Source documentation  Accounting records must be supported by such source documentation as  Cancelled checks  Paid bills  Payrolls  Time and attendance records  Contract and subgrant award documents  Others Financial Management System

11. Cash management  Procedures for minimizing the time elapsing between drawdown of funds and disbursement by grantee  To enable the grantee sufficient time to prepare cash transaction reports, grantees must establish procedures to ensure the receipt of reports on subgrantees’  Cash balances  Cash disbursements

12. Documentation Standard Transactions adequately documented  Expenditures  Traceable to source documentation  Consistent with GAAP Assets properly managed  Equipment accounted for  Procurement rules adhered to Subgrants  Appropriate clauses and work statements

13. Source Documentation Evidence of authority to incur cost Establishes actual amount paid Proof of purchase for equipment Subject to record retention requirements Designed to demonstrate that all assets were obtained in compliance with requirements

14. Accounting system  Chart of accounts  Bank account reconciliations  Petty cash receipts / reconciliations Information maintained  Allow grant reporting  In accordance with grant budget  In accordance with cost principles Books & records must contain  All financial information of the organization  Both allowable and unallowable Source Documentation – System

15. Source Documentation – Goods and Services Purchase of goods  Authorizing purchase orders  Cancelled checks  Store/vendor receipts Subcontractor invoices  With appropriate cost breakouts

16. Source Documentation – Labor Labor costs  Time sheets for staff  Payroll records  Cancelled checks or direct deposit confirmations Benefits  Insurance invoices  Requests for leave

17. Source Documentation – Property Inventory listing Maintenance records Mileage logs for vehicles Receiving logs for deliveries Disposition records

18. Source Documentation – Participant Records Evidence of eligibility  Income statements  Proof of status Support service payments  Signed receipts  Vendor invoices for child care Training  Registration documents

19. Source Documentation – Procurement Procurement  Request for bid  Cost or price analysis Contract documents  Contract  Modifications  Performance data  Financial data  Closeout documents

20. Definition - Obligation Obligation  Definition  During a given period of time  Requires payment by the grantee during the same or future period  Includes  Amounts of orders placed  C ontracts and subgrants awarded  G oods and services received, and  Similar transactions

21. Definition – Unliquidated Obligation Unliquidated Obligation  The amount of obligations incurred for which an expenditure has not been recorded  For example: Goods and services ordered but not received

22. Accrued Expenditure Charges incurred by a grantee during a given period requiring a provision of funds for:  Goods and tangible property received  Services performed by employees, subgrantees, subcontractors, etc.  Whether or not a cash payment is made

23. Examples Obligation  Subcontract for training services  Purchase order for equipment Unliquidated Obligation  Purchase order not yet filled Accrued Expenditure  Equipment received, but not invoiced or paid

24. Reporting Elements Quarterly Financial Report - ETA 9130 Federal Cash  Cash receipts  Cash disbursements  Cash on hand

25. Reporting Elements Quarterly Financial Report - ETA 9130 Federal Expenditures and Unobligated Balance  Total Federal funds authorized  Federal share of expenditures  Accrued expenditures must be included  Accrued expenditures must be documented  Total administrative expenditures  Federal share of unliquidated obligations  Total Federal obligations  Unobligated balance of Federal funds

26. Reporting Elements Quarterly Financial Report - ETA 9130 Recipient Share  Total recipient share required  Recipient share of expenditures  Recipient share of unliquidated obligations  Total recipient obligations  Remaining recipient share to be provided

27. Reporting Elements Quarterly Financial Report - ETA 9130 Program Income  Total Federal program income earned  Program income expended in accordance with the addition method  Unexpended program income

28. Reporting Elements Quarterly Financial Report - ETA 9130 Additional Expenditure Data Requirements  Other Federal funds expended  Others Remarks Certification

29. Cost Categories Program  Allowable  Within scope of work  Assist to achieve grant objectives  Services to participants, usually Administrative  Found in WIA regs at 20 CFR 667.220(a)  Listed in each DOL-ETA grant agreement  Section  List of specific functions

30. Questions?